Lean-Case Metric Definitions
Metrics are crucial in successfully planning and evaluating the performance of a business. Lean-Case uses two basic financial concepts:
Applying Unit Economics involves looking at the following metrics:
Example - how to ..
So if you sell a product for $100, and it costs you $15 to make each one,
you have a Gross Profit of $85 or a Gross Margin of 85%.
Example - continued ..
if your cost to acquire a customer is $45,
you have a Net Profit of $40 per unit sold or a Net Margin of 40%.
To understand Business Profitability we have to take into account